Sep 30, 2021 - Energy & Climate
Oil executives predict less EV growth than Biden wants
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Oil executives surveyed by the Dallas Fed predict levels of electric car sales that would be far short of President Biden's goal of having cars with a plug make up half of U.S. sales by 2030.
Driving the news: The chart above shows responses to one of the bank's questions to oil-and-gas companies in their latest quarterly survey.
- The question to companies headquartered in the banks' region, which includes Texas, did specifically cite Biden's target.
Quick take: Crystal balls on energy transition are notoriously unreliable.
- But if nothing else, the answers suggest that the execs don't see a key source of oil demand — the U.S. transport sector — shifting as fast as EV advocates are hoping.
By the numbers: Here are a few more snapshots from the latest survey of roughly 140 companies as production continues growing after the pandemic-fueled decline...
- Oil-and-gas producers and oilfield services companies both report rising business costs (Bloomberg has more about that).
- Half of oil-and-gas support services firms report difficulty hiring workers.
- On average, the companies expect a West Texas Intermediate oil price of $70-per-barrel at year-end.
- 87% of respondents say their firms are not purchasing carbon credits or offsets.
